A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 76
We
recommend
that
they
are
regularly reviewed to take into
account events in the family and
the changing attitude of the settlor.
Even if the settlor of the trusts is
The Family Courts are well-used to
deceased or elderly, it can be helpful
considering
offshore
for the family collectively to inform
Using
structures
the trustees of the family’s wishes
provide
by
wishes.
assets they contain, though it will
The letter of wishes can usefully
add another layer to the ring-fencing
underline that the trust’s assets are
of assets. Offshore enforcement
dynastic assets intended to benefit
is clearly more complicated and
future generations of the family.
costly, so the Court is likely to look
updating
letters
of
such
complete
structures.
will
protection
not
to
to meet a spouse’s claim from
This is a very important aspect.
assets onshore if possible to offer
The position of protector can be
them more security.
very helpful in this regard and the
protector is encouraged to engage
It is important to be aware that the
with the governance process of any
way in which trustees manage the
family business held within trust
trust funds and the benefits that
so as to inform the trustees of the
have been paid to beneficiaries at
purpose of the company. Letters of
different times is likely to have an
wishes are not always, in the first
impact on the outcome.
instance, made available in family
proceedings.
“
THE BENEFITS TH AT
FLOW TO A BENEFICIARY
SPOUSE FROM A TRUST
DURING A MARRIAGE
A R E H I G H LY R E L E V A N T
IN THE EVENT OF A
DIVORCE.
THE ENGLISH
FA M I LY C O U R T W I L L B E
INTERESTED TO
UNDERSTAND THE
EXTENT OF THE
DISTRIBUTIONS MADE
TO THE
BENEFICIARY SPOUSE
DURING THE L AT TER
YEARS OF THE
REL ATIONSHIP AND
WHETHER THESE WERE
RELIED UPON TO MEET
T H E FA M I LY ’ S
STANDARD OF LIVING.
THIS WILL INFORM THE
COURT’S DECISION ON
A DEPARTING SPOUSE’S
FUTURE NEEDS
P O S T- D I V O R C E
KATIE O’CALLAGHAN
FA M I LY P A R T N E R
However, if they
record a dynastic intent and quality
”
to the trust, they may be worthwhile
disclosing.
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